The Production of Value Opinions by Specialized Valuers: Practical Sense and the Enactment of Judgment†

Maude Plante, Sarah Maire () and Richard Pucci
Additional contact information
Sarah Maire: LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique
Richard Pucci: Monash university

Post-Print from HAL

Abstract: This article explores how valuers construct value opinions. Although some implications of outsourcing valuation to valuers for accounting purposes have been highlighted in the literature, we add a valuer perspective complementing the accountant's standpoint in order to obtain a fuller picture of these ramifications. Drawing on 62 interviews, we study the role of judgment in valuation and find that judgment is largely tied with the sensemaking of valuers. By examining the valuation activities of art and real estate valuers, we show that these specialized valuers follow a similar valuation process which allows them to grasp how to go on with valuation. This four-phase process starts and ends by situating the opinion in its specific valuation context and is centered on iterations between researching, analyzing, and relativizing comparable data that may be adjusted to connect with a sense of what the value should be. Overall, judgment is shown to be enacted based on a practical sense of conducting valuation that includes a "gut feeling" of what represents a plausible value. This study suggests that the valuer's input should be recognized as situated, sense-contingent, and vulnerable to the underlying politics and risks tied to providing an opinion. Our results also point to stark differences between how valuers approach the use of judgment compared to how judgment is typically exercised by accounting specialists.

Date: 2022-02-02
References: Add references at CitEc
Citations:

Published in Contemporary Accounting Research, 2022, ⟨10.1111/1911-3846.12765⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03707326

DOI: 10.1111/1911-3846.12765

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().